Sam and Rosario Maceo
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Salvatore ("Sam") Maceo and Rosario ("Papa Rose") Maceo Sr. were born in Palermo, Sicily and arrived in Galveston, Texas in 1910. They were barbers who turned to bootlegging during Prohibition and operated the now-vanished Hollywood Dinner Club and the Balinese Room. Both establishments offered food and first-class entertainment as well as illegal casino gambling.
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[edit] The Maceo Dynasty: 1916-1957
A decade after the untimely demise of Sam Bongio, the Maceo brothers began making their mark south of Houston on Galveston Island. Led by Rosario and Salvatore Maceo, the Maceos would come to influence crime in Houston, Dallas and of course on Galveston Island. The Maceos engaged in prostitution, extortion, the corruption and compromise of public officials, liquor and narcotics smuggling, gambling and more. All this in addition to a wide array of legitimate business enterprises which made the family a fortune.
- Rosario Maceo "Papa Rose" - The quiet unseen force behind the Maceo operation, Papa rose enforced the Maceo rule of law in Houston and Galveston Island. He paired with younger brother Sam in a contrast perfectly suited for their line of work which required the ability to employ muscle at times when diplomacy failed.
- Salvatore Maceo "Big Sam" - Smiling and personable, Sam was the face of the Maceo operation. His ties to politicians, hoodlums, entertainers and gamblers stretched far beyond the borders of Texas.
- Thomasino (AKA) Frank Maceo - Dies in 1918 Flue Epidemic
- Vincent Maceo - Youngest Maceo brother - very low key, and somewhat distanced from the limelight of the operation. Died from lung cancer in 1947. After his death, he was survived by his wife; Angela Barra and one daughter Angela Marie Maceo -she was only 12-years old. Angela Maceo is known to be the first first full blooded niece to Sam and Rose, who adopted kids until later in life.
The Maceo brothers were born in Palermo, Italy. The family arrived in the United States in 1901 settling in Leesville, Louisiana. Sam then 7 and Rose 13, grew up in the town bordering Texas. Rose moved into the neighboring state in 1910 opening a barbershop "first on Murdoch's Pier and later," in the newly opened Hotel Galvez. Sam joined the U.S., Army rising to the rank of sergeant before joining his brother in Galveston following his discharge. The brothers continued barbering before entering the liquor trade working for "Dutch" O.E. Voight and Ollie J. Quinn leaders of The Beach gang with the advent of prohibition.
A sizeable portion of the estimated 20,000 cases of booze making its way onto the Island via Cuba and Jamaica belonged to the Beach Gang and thus the importance of the Maceos. Galveston Island "as was the case with other areas engaged in illicit activity," had its fair share of gangs and independents who engaged in hijacking. The Maceos were dependable in securing the Beach gang loads from the likes of Johnny Jack Nounes head of the Downtown Gang.
1926 proved to be a big year for the Maceos as they opened a small speakeasy on a pier off the seawall at 21st Street. The place had operated previously as the Chop Suey but would open under Maceo control first as Maceo's Grotto and later as the Sui Jen. The association between the Beach gang and the Maceos proved so profitable that Voight and Quinn offered the Maceos a chance to move into the bigtime when gambler Jake Friedman decided to sell his interest in a Galveston nightclub venture then under construction in favor of a Houston proposition. The brothers purchased Friendman's interest and joined Voight and Quinn as the principal owners of the Hollywood Dinner Club "Galveston's first big-time nightclub," which also opened in 1926.[1]
The Hollywood Dinner Club was the subject of Forfeiture proceedings in 1927 which named.
- Sam Maceo - Galveston
- George McQueen - Galveston
- J. Mills - Galveston
- Frank Battaglia - Galvestonas incorporators of the charter issued to operate golf links, tennis courts and other sporting events.
During there time spent toiling for and later in conjunction with Quinn and Voight, the Maceo brothers "most notably Sam," learned the art of public relations. Sam took note of the methods employed by Quinn. Described as "rotund and unfailingly pleasant," Ollie faithfully attended Sunday service at the First Baptist Church. Despite his unsavory professional ties which included ownership of the Deluxe Club a renowned vice den and Modern Vending Company which he used to distribute slot machines and other games of chance. Quinn's presence was welcomed.
Sam Maceo's personality closely mirrored that of Quinn and outside of physical traits completely at odds, the two employed the same tactics in dealing with the public. The Hollywood Dinner Club is the place where Sam's sparkling personality became legend. It has been said that the Hollywood Dinner Club was the first air-conditioned night club in the country. Of course there is no way of knowing if this was indeed the case but surely helped to lure patrons into the 500 seat dining room.
As if the luxury of an air-conditioned reprieve from the notoriously muggy Galveston summer nights wasn't enticing enough, the Maceos offered gambling in the form of blackjack, craps and roulette. For a well rounded evening top notch live entertainment was the feature of the evenings festivities. Sam frequently travelled to the west coast to book entertainers for the Hollywood Dinner Club. Over the years Guy Lombardo, Ben Bernie, the Boswell sisters, Glen Gray, Phil Harris "one of Sam Maceo's dearest friends," Paul Whiteman, Joe Reichman, Shep Fields, Henry King, Jack Teagarden and Duke Ellington all would play the Hollywood Dinner Club. The Hollywood Dinner Club operated unmolested until 1939 when a rare raid by lawmen resulted in the seizure of a small quantity of narcotics. The incident resulted in the padlocking of the operation.
[edit] Other Maceo Ventures
One of the most impressive things about the Maceo operation was the diversity of their activities. Sam while engaged in running the aforementioned nightclubs, gambling spots and restaurants, entered the oil business in 1934. Maceo purchased a spread of land around the Crescent Oil Syndicate No.1 Shaw on Galveston Island for a $8,500 consideration. The investment led to the incorporation of Gulf Oil Properties. This concern was followed in short order by;
- Maceo and Company
- R. Maceo Trustee
Dickinson Equipment Murdoch Bathouse Company Inc., Gulf Properties Inc., Gulf Entertainment places Galveston Novelty Company Galveston Pleasure Pier Maceo Properties Balinese Room Murdoch Bingo Murdoch Sportsland Studio Lounge Western Room Turf Grill Turf Tap Room Oyster Bar Streamline Dinner Club The Fish Room
This partial list shows just how far the Maceo empire expanded over a brief period. As the Maceo empire grew, many of the top level jobs were handled by relatives. The key players in the Maceo expanse in addition to Rose and Sam were;
- Anthony J. Fertitta - "Nephew" Manager of the Balinese Room. The popular upscale Houston Restaurant Vic and Anthony's is named in honor of him and his brother Victor J.[The restaurant portion of the operation.]
- Victor J. Fertitta - "Nephew" Manager of the Club Room adjoining the Balinese Room. [The casino portion of the Balinese enterprise].
- Frank Maceo - "cousin" 3rd largest investor in Maceo & Company. The manager of the bookmaking operation run by the Maceos at the Turf Grill.
- Vincent A. Maceo - "cousin" Managed the Chilli bowl, one of the dining and gambling spots owned by the Maceos.
- Victor A. Maceo - "cousin" Replaced Frank Maceo as the manager of horse-race betting at the Turf Grill.
- Sam T. Maceo - "cousin" Managed the Streamliner. Another in the string of restaurants and gambling joints run by the Maceos.
- Victor C. Maceo - "cousin" Managed real-estate ventures in connection with Gulf Properties.
- Joe T. Maceo - "cousin" Held positions related to bookmaking and equipment rentals.
- Frank J. Fertitta - "cousin" held the position of assistant bookkeeper during the 40s and 50s, later spearheaded the families successful transition into the Las Vegas market. Brother of Vic and Anthony Feritta.
- John B. Arena - "in-law" Equipment manager for the Maceo brothers. Some of Arena's equipment included machines used in connection with Maceo gambling enterprises.
- R.L. Fabi - "in-law" Collector of debts incurred by customers dealing with John Arena.
- Lorenzo Grillette - Marred to Olivia Fertitta, and Robert Louis Andrich - married to Angela Maceo, Managed the Silver Moon.
- Joe Salvato - Held 1/4 interest in the Dickinson Equipment. Owner of record and operator of the Chilli Bowl.
- O.E. "Dutch" Voight - "In-law" Gave the Maceos there start in Galveston. Retained a 5 percent interest in the Maceo operation throughout the 40s.
- Sam Serio - Macoe and Company General accountant. Serio appeared before the grand jury which investigated the Maceo operation in 1951.
- Felix J. DeMary - Texas horse breeder and bookmaker who operated the Border Cafe just across the state line in Orange Louisiana. DeMary provided the race wire information used in the Maceo bookmaking operation.
One seemingly sentimental purchase made by the Maceo business enterprise was the deal which saw Rose Maceo buy the Crystal Palace for $140,000 cash in the late 30s. This was a considerable sum to pay for any property but the Crystal Palace purchase marked the return of Papa Rose to his Galveston roots. Located along Murdoch Pier, Maceo had cut hair for 15 cents per customer when he first arrived from Leesville. It was the place where the Maceo enterprise was born. It was also a good business decision as it solidified the family hold over concessions along the beach. Murdoch's bathhouse and the Sui Jen Pier were other holdings which contributed to the Maceo ledger.
[edit] The Nevada Expansion
The future would hold successes but the golden age of open operation in Galveston was over. Sam and Rosario Maceo seemingly understood this and by 1950 had taken steps to move the operation out of Texas and into the rapidly expanding gambling Mecca located in the Nevada Desert.
The Maceo's Nevada power was demonstrated when Sam interceded on behalf of former Cleveland bootlegger Mo Dalitz with the Nevada Tax Commission. The tax commission was threatening to stop Dalitz from opening the newly constructed Desert Inn Hotel, Casino and Golf resort. A gala event was planned for opening night and Dalitz having exhausted his options called upon Maceo who saved the day after a last minute meeting with Senator Pat McCarran at the Riverside Hotel in Reno.
When the Desert Inn opened on April 24, 1950. Sam Maceo was among a group of 150 honored guests holding Gold cards. This elite corp was allowed $10,000 casino credit and counted amongst their measure Governor Vail Pittman, Lieutenant Governor Clifford A. Jones, Las Vegas Mayor Ernie Cragin and crime figures such as Black Bill Tocco, Pete Licavoli and Frank Milano.
[edit] Death and Change
Within a year of the Desert Inn opening Sam Maceo died at St. Johns Hopkins Hospital in Baltimore, Maryland. Maceo had undergone surgery for cancer which had developed in his digestive tract on March 28. His death on April 15 was marked in newspapers and weekly periodicals across the country. When Maceo's body was flown back to Galveston his nephew and heir apparent Anthony Fertitta and New Orleans hotel owner Seymour Weiss oversaw the arrangements. The state crime committee opened an investigation into the Maceo empire within months of his burial. It was clear times were changing. Rose Maceo was given a subpoena at the Turf Grill but never appeared before the committee. He chose to visit Italy until the hearings closed. By 1953 he to would pass on effectively ending the Maceo dominance.
[edit] Fertitta Era Begins
During the state investigation which exposed the inner-workings of the Maceo operation, Rose Maceo arranged a huge transfer of interests from the senior or founding members of the Maceo empire to a junior or new era group. The senior members which was comprised of; Rosario Maceo, Vic C. Maceo, Sam Maceo trust, O.E. Voight and A.J. Adams sold a portion of their controlling interest to the "junior Maceos." These junior Maceos were; Anthony J. Fertitta, Frank J. Fertitta Sr, Victor J. Fertitta, Sam T. Maceo, Vic A. Maceo and Lorenzo Grilliette.
The sale price was $ 480,000 of which $ 240,000 was loaned to the juniors by Maceo & Company. Gulf Oil Properties established in the early 30s as the vehicle which the Maceos entered the oil business loaned the junior group an additional $90,000. The United States National Bank, the First National Bank and the Moody National Bank of Galveston all contributed loans totalling $50,000 each to the title transfer. Shortly thereafter the investigation closed and business continued as before only in a slightly muted fashion. Galveston continued to enjoy its hard earned reputation as one of America's last open cities and the Maceo now Fertitta operation was the driving force behind its success.
[edit] Life's Troubles
All went swimmingly until Anthony J. Fertitta got into a scrap with Henry Suydam and Joe Scherschel a writer and photographer for Life Magazine. The pair had reportedly entered the Turf Athletic Club and secretly snapped photos of the gambling operation for a story on "America's last surviving sin city." The 3 a.m. confrontation which Fertitta said he "barely tapped," Suydam, after confronting the pair outside the club. Fertitta said he received reports of two men acting suspiciously and went to investigate. No charges were filed in the confrontation but the ensuing fire storm led to a crackdown which forced the Fertitta's to close their open gambling operations.
The heat proved to much and after several reform efforts, Vic and Anthony Fertitta announced they were closing the Balinese Room. The reason was without question the crackdown initiated by Atty. General Will Wilson who relentless assault led to injunctions and raids the likes of which the Maceo and Fertittas had never experienced before. Immediately following the announcement, Anthony Feritta detailed plans for his relocation to Las Vegas where he was already associated with Belden Kattleman at the El Rancho.
[edit] Balinese Room History
The Balinese Room was originally opened in 1929 as "The Grotto," one of the many entertainment venues that had begun popping up along the Galveston Seawall. It quickly became an elite spot during the 1940s and 1950s, featuring entertainment by Frank Sinatra, Bob Hope, George Burns and other top acts of the day. Patrons of the private club included Howard Hughes, Sophie Tucker and wealthy oil barons from nearby Houston.
In 1932, the Grotto was remodeled into a Chinese restaurant called the "Sui Jen" (pronounced Swee Rin), and a 200-foot (60 m) pier, stretching out over the Gulf, was added to the building with a T-head at its end. After the Japanese attack on Pearl Harbor on December 7, 1941, the name was changed to the Balinese Room, and the decor modified accordingly. The pier was also expanded to its current 600-foot (180 m) length.
[edit] Maceo-Fertitta Business Initiatives
Salvatore "Big Sam" Maceo and his older brother Rosario "Papa Rose" were born in Sicily, but moved to New Orleans with their family in 1901. Their generosity to local charities endeared them to the community, who viewed them as boosters and benefactors of Galveston.
Rosario Maceo, son of Frank Maceo (one of four brothers), still runs a spice import/export business, Maceo Spice & Import Company, in Galveston.
Olivia Maceo, the sister of Sam and Rose, married Joseph Fertitta, the great grandfather of Tilman Fertitta, president of the Landry's restaurant chain.
Tilman Fertitta began his entrepreneurial career in Houston in the 1970s. He is Chairman of the Board, President and CEO and the largest shareholder of Landry's Restaurants, Inc. Landry's operates more than 300 properties in 36 states and in six countries. Nationwide, Landry's employs more than 38,000 people. He was named one of "12 outstanding Houstonians" in 1986 and has been the recipient of numerous awards and honors including the Houston Entrepreneur of the Year Award in 1997 and the Legacy Award in 1998. In 2004, Fertitta was inducted into the Texas Business Hall of Fame and was the second youngest inductee. Forbes magazine named Landry's as one of the best companies in America for three consecutive years. Fertitta is working to bring gambling to Galveston, following the lead of successful similar ventures in states adjoining Texas.
Also of note is that Frank Fertitta III and Lorenzo Fertitta are the owners of Station Casinos and Zuffa which is the company that owns the Ultimate Fighting Championship.
The material in this section was copied without permission from the crimefile index. Gatecitypublishing 2007.
[edit] Notes
- ^ The Hollywood Dinner Club - Location 61st and Avenue S, on the Western edge of the city beyond the seawall.
